"What influences decisions of investors on crowdfunding platforms?" - New study published in Electronic Markets

"What influences decisions of investors on crowdfunding platforms?" - New study published in Electronic Markets

A new article by Andreas Hoegen, Dennis Steininger and Daniel Veit entitled "How do Investors Decide? An Interdisciplinary Review of Decision-Making in Crowdfunding" was published in Electronic Markets..

About the study: What influences the decisions of investors on crowdfunding platforms? Crowdfunding has gained prominence as a source of funding for startups and innovation projects during the last years. At the same time, the number of platforms and crowdfunding campaigns as well as the competition for investors and their resources have strongly increased. This requires an in-depth understanding of the factors that influence investment decisions on these platforms. The study addresses this topic and depicts the essential influencing factors for crowdfunding investors in a model. It is shown that not only typical characteristics (e.g., product quality) of the project seeking funding do have an influence but also platform design or physical attributes of the founders, for example. The results lead to suggestions how founders and platform providers can be successful in the very competitive market.